French energy company and LNG player Engie swung to profit for the year 2017, reporting an income of €1.4 billion ($1.74 billion), compared to a €400 million net loss in 2016.
Engie noted that the result was boosted by “notably lower impairments” compared to 2016.
The company said it has repositioned its portfolio, laying foundations for future growth, making it less exposed to market risks.
According to the latest report, Engie eyes a sustained growth in 2018, expecting a net income, excluding exploration & production and LNG between €2.45 and €2.65 billion, a gross increase of 8 percent compared to 2017.
Speaking of the results, Engie’s CEO Isabelle Kocher, said, “the return to organic growth, which is the result of our teams’ work and engagement, is confirmed and allow us to anticipate strong results and a higher shareholder remuneration for 2018.”
Revenues increased by 0.3 percent on a reported basis to €65.0 billion and by 1.7 percent on an organic basis compared with 2016. Reported growth was affected by changes in the scope of consolidation (€583 million negative impact) due mainly to the disposal of the merchant power generation assets in the United States, Poland and the United Kingdom.
Organic revenue growth was driven by an increase in volumes and prices on commodities sold in the gas midstream business in Europe and liquefied natural gas (LNG) business in Asia, an improved performance of the thermal power generation plants in Europe and Australia.
These positive developments were partially offset by a fall in sales of natural gas to business clients in France and by a decrease in hydro renewable energy generation in France.